| The markets for the Company's products and services are intensely competitive. Pricing pressure, rapid development, feature upgrades, and new undefined technologies characterize the general nature of the industry. The Company competes with videoconferencing, video streaming and teleconferencing companies, along with companies that provide Internet broadcasting services to businesses and other organizations. Numerous companies, including Broadcast.com Inc ("Broadcast.com") and VStream Incorporated, offer products and services which compete directly or indirectly with one or more of the Company's products and services. Most of the Company's competitors and potential competitors have longer operating histories, significantly greater financial, management, technical, marketing and other resources, greater name recognition, and a larger installed base of customers than the Company. In addition, many of the Company's competitors have well-established relationships with current and potential customers of the Company, have extensive knowledge of the videoconferencing and video streaming industry, and are capable of offering a single-vendor solution. As a result, the Company's competitors may be in a better position than the Company to devote significant resources toward the development, promotion and sale of competing products and to respond more quickly to new or emerging technologies and changes in customer requirements. The Company also expects that the competition will increase as a result of videoconferencing, video streaming and computer hardware and software industry consolidations and alliances. Increased competition is likely to result in price reductions, reduced gross margins and loss of market share, any of which could materially adversely affect the Company's business, financial condition and results of operations. There can be no assurance that the Company will be able to compete successfully against current and future competitors, that competition will not intensify or that competitive pressure faced by the Company will not materially adversely affect its business, financial condition and results of operations. |